BC20 IAS 23 uses the term 'borrowing costs' whereas SFAS 34 uses the term 'interest costs'. 'Borrowing costs' reflects the broader definition in IAS 23, which encompasses interest and other costs, such as:

(a) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs;. [In 2007 the Board was advised that some of the components of borrowing costs in paragraph 6 are broadly equivalent to the components of interest expense calculated using the effective interest method in accordance with IAS 39 Financial Instruments: Recognition and Measurement. Consequently, the Board amended paragraph 6 to refer to the relevant guidance in IAS 39 when describing the components of borrowing costs. Subsequently, IFRS 9 Financial Instruments replaced IAS 39. IFRS 9 applies to all items that were previously within the scope of IAS 39.] and

(b) amortisation of ancillary costs incurred in connection with the arrangement of borrowings.

BC21 EITF Issue No. 99-9 concludes that derivative gains and losses (arising from the effective portion of a derivative instrument that qualifies as a fair value hedge) are part of the capitalised interest cost. IAS 23 does not address such derivative gains and losses.